How much money to retire happy and secure? We're living longer and longer, and your money has to go further. The answer is - it depends on your goals for retirement and your preferred lifestyle.
Read the contrasting attitudes of Richard and Joe and you will see that when it comes to retirement financial planning - one size does not fit all. It is essential to incorporate your personal goals and lifestyle choices into your planning.
Retirement financial planning involves consideration of Pension, Saving for retirement, and Investing for retirement and Budgeting.
In my Retirement Coaching practice, one of the first areas I explore with a client are their Retirement Goals.
What you would like your retirement to look like - money, work, health, housing, and lifestyle? What would it feel like to have the peace of mind of financial security in retirement?
Ask yourself the following questions regarding your personal and financial objectives:
expenditure should be analyzed into regular/occasional,
essential/discretionary, and frequency-weekly, monthly, quarterly, annual.
Financial security in retirement requires retirement financial planning, commitment and money! In saving for retirement, set aside a reasonable amount of your disposable income as early as possible.
The total of your expenditure should be less than your income if you are to avoid the Micawber Principle "Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
The currency has changed from "pounds, shillings and pence" since Dickens created that character - but the principle is timeless!
How to Calculate how much money to retire
A retirement income calculator will indicate how much you need to be saving to enjoy a happy and secure retirement.
Click here to access a Retirement Income Calculator.